Modelling the influence of managerial competence on managerial performance in the Ghanaian banking sector

Abstract

The importance of human resource for the success and growth of every organisation, including banks in developing economies, cannot be underestimated. The banking sector in Ghana, a developing economy, has recently faced some significant performance-related difficulties, such as suspending the licences of new banks, raising the minimum capital required, and recording fraud cases. These developments in the banking sector seriously questioned the managerial competencies of bank managers providing leadership roles to these banks in Ghana. It was for this purpose that this study examined the influence of managerial competence on the performance of branch and operational managers in the Ghanaian banking sector. The study sought to achieve, among other things, to explore how managerial competencies such as customer value management, interpersonal, leadership and intrapersonal relate to managerial performance in the banking sector of Ghana. The study adopted the quantitative approach from the positivist philosophical perspective and, specifically, the cross-sectional survey method. A sample of 127 branch and operation managers from the sixteen administrative regions of Ghana was drawn for the study. Data were collected with an adopted questionnaire and analysed with partial least square structural equation modelling. The study found a significant relationship between customer value management, interpersonal, leadership, intrapersonal, technical competencies and managerial performance in the banking sector. The relative importance of each of the five managerial competencies found was customer value management competence, interpersonal competence, leadership competence, intrapersonal competence and technical competence. The study concluded that managerial competence relates to managerial performance in the banking sector in Ghana. The implications of the findings of this study are that human resource managers in the banking sector should pay attention to these managerial competencies in hiring and developing managers for their branch and operational managerial positions in developing economies.

Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City

“…Another support is drawn from a study by Mwenda, Ngollo and Mwasota [21], in their study on managerial competence and financial performance among firms listed on Dar es Salaam stock exchange. Additional consistency is found between findings of this study and findings by Yahaya and Segbenya [23], who investigated same variables in the banking sector in Ghana. This study finding equally agrees with a study by Kamukama [14] while interrogating the mediating role of managerial competences in the relationship between competitive advantage and financial performance of commercial banks in Uganda.…”

“…For example, Ssekakubo, Ndiwalana and Lwanga, (2014) in their study on savings and credit cooperatives in Uganda report a positive and significant relationship between managerial competencies and financial performance. Similar findings are reported by Yahaya & Segbenya, [23] and Apreku-Djan [22]. Conversely, Torres Rivera and Pedraza Melo [25], and Wijaya and Irianto [24], while studying same relationship found non-significant effects.…”

“…Similar finding was reported by Mwenda, Ngollo and Mwasota [21], while studying same relationships among firms listed on Dar es Salaam stock exchange. Also related results were equally found out by Apreku-Djan [22] and Yahaya & Segbenya [23]. A critical review on all these studies reveal context differences and none was conducted on NGOs, besides Wijaya and Irianto [24], reporting negative effects in their study on Managerial Competence, Technical Competence, and Strategic Competence on Firm Performance in Electrical Engineering Company in Bandung, Indonesia.…”